Q. We are looking for land, and when talking to real estate agents
the first thing they ask is about our personal financial picture. We
feel this is nobody's business and find this practice very
offensive. How can we avoid this happening in the future?

A. You probably can't unless you have the ability to pay all
cash for your land. A real estate agent is not being nosy but doing a
good job when delving into your financial affairs. This is called
"qualifying the buyer," and if you're serious about
making a real estate purchase you must go through the process. When
qualifying you, the agent needs to know your available cash on hand or
at least how much you will make available for a down payment. Your
current earnings, future income expectations, and stability all will
point to whether you can sustain a payment schedule over the years.
Also, the status of your credit is important as a seller may run a
credit check on you when you make an offer to buy. Only after obtaining
this information can the agent match you up with the right properties,
ones that you can afford. It is inappropriate and a waste of time to
show you properties that are less than you want or are far over your
heads in price.

Although many people are uncomfortable sharing their financial
information with strangers, remember: The real estate agent is a
professional and won't divulge your private business to others.
With this exception: When you make an offer to buy property the agent
will tell the seller enough about you to make the seller comfortable
with your offer. This breach of privacy is necessary. After all, the
seller is taking a risk by selling to you on a contract.

If you plan on buying with all cash you simply need to let the
agent know how much you are prepared to spend.

Q. We want to sell our small farm. My husband wants to price the
place higher than its actual value to leave room for negotiation, but I
think we should price the place at exactly the price we want. Which
course of action do you recommend?

A. Anytime you set the price higher than 5 percent above the
property's fair market value you are asking for trouble. Studies
have shown that a well-priced property will sell quickly but an
overpriced property will stay on the market for an inordinately long
period of time without ever even receiving a low offer. After a correct
price adjustment is made the property usually takes some time to sell
because by then it is "shop worn" and most potential buyers
have crossed it off their list. Once this happens a buyer will almost
never reconsider a property.

If a property sells quickly the seller inevitably feels it was
underpriced. In actuality, if proper homework was done and the real
estate was priced correctly a quick sale is the normal course of events.

Q. We are looking for land and recently toured several pieces all
in one day. When we got home we found we had really confused the
different parcels in our minds and weren't sure which was which.
Can you give us any ideas on how to keep this from happening again? We
need an organized system for comparing the various properties we see.

A. You are not alone. This happens to almost everyone who looks at
more than one piece of property in one day. The easiest way to handle
this problem is by using field notes and a plus-minus chart.

When you arrive at a piece of property start taking notes
immediately. Begin with an easily identifiable feature that you can use
to name the place. List all features, both positive and negative, on
your field notes. Does it have a view, trees, water? Is it level, steep,
rolling? Are utilities available? Is it adaptable for livestock or other
plans you may have? Be sure to note access and/or need for improvements,
if any. Is there a wetland on the property?

Immediately after viewing land you should make a plus-minus chart
while your memory is fresh. Create a chart for each piece of property
viewed, and headline it with the easily identifiable feature you noted
when at the property. Below the headline put a plus sign on one side of
the sheet and a minus sign on the other side so there will be two
columns on your page. On the plus side list everything you noted and can
think of that you liked and every feature that makes the property useful
to you. Under the minus column list the negative features to the
property. If there are wetlands on the property they may well be listed
in each column, as they are often beautiful and attract wildlife, but
can severely limit your development and use options for that portion of
the land.

There is no perfect piece of real estate, and your chart will
always have some items in the minus column. By comparing charts you can
graphically see which properties have the greatest number of positive
features and least negative features. This will help you make an
objective decision. Just be sure the minus column does not include a
negative feature that can never be overcome or at least tolerated.

The plus-minus chart is a helpful tool for evaluating property
even if you only view one piece of land. It helps organize your thoughts
in order to arrive at an objective decision.

One other way your notes and plus-minus chart are invaluable: It
is a common tendency to mentally gather the best features from every
niece of land you have seen and place them on one parcel. Your notes and
charts will go far in preventing this impossible dream from occurring.
Happy land hunting.

Q. My home and land are in a forested area. My neighbor recently
told me that during a fire the local fire department can come in and cut
down my trees without my permission. This makes me furious. Whatever
happened to the rights of private property owners?

A. In many states the local fire department is charged with
protecting property and has absolute authority to do so when a fire
occurs. While most fire departments work with an owner whenever
possible, they can take steps against the landowner's wishes in
order to protect property. These steps may include felling trees away
from homes or other buildings and taking actions to keep the fire from
spreading to adjacent properties.

Now that fire season is here it's a good time to think of
taking steps to protect your home and property. Try to keep brush a good
distance from your home and out-buildings. Keep yard trees widely
separated and away from structures. If possible, keep a green lawn or
other non-flammable surface around your home. If you own forest land
consider putting fire lanes through the timber and keep them free of
brush. This provides access to the forest and creates fire breaks that
can sometimes stop a fire. Check with your fire department on other
steps you can take that are appropriate for your area.

Q. Several times lately I have heard references to the
"bundle of rights" and don't exactly know what that is.
Could you explain it, please?

A. The bundle of rights you refer to is the property owners right to
own, possess, use, enjoy, and sell, lease, or bequeath real property.
These rights include all that is above and below ground level, including
air space.

There are certain modifiers to these rights, however. Air traffic
may pass over the property above a certain altitude and the property
owner may not interfere. Other government restrictions can temper these
rights, as in zoning, safety, and health laws.

Legend has it that when land was sold the previous owner gave the
new owner a bundle of sticks that represented all of the rights to the
property. Like the sticks, each right is considered a separate entity,
and some rights can be sold, or a portion of them sold. For example, a
percentage or all of the mineral rights or timber rights can be sold.
That's one of the main reasons a buyer should read the title report
prior to purchase, to determine that he or she is receiving all the
property's important rights.

Water rights can be another matter. In some states they are deeded
and will go with the land unless noted as exceptions on the title
report. In other states they are not a recorded right. They are
registered with the agency that oversees water-use rights. In that case
you must check with that agency to make sure the water rights go with
the property you are considering.

Naturally, the best real estate purchase is one that includes the
full bundle of rights.

Q. I recently bought some land on a real estate contract. I have
heard there is a way to shorten the payment schedule, say from 15 years
to seven and a half years. Could you explain how to do this?

A. With pleasure. To cut the years on a real estate contract in half
simply double the amount going to principal each time you make your
payment. In the beginning this amount is small and relatively easy to
do, but as time goes by the amount going to principal is constantly
increasing and it takes careful planning to succeed. You will do fine if
your income increases over the years.

For example, if you have a contract balance of $21,000 amortized
over 15 years at the interest rate of 8%, your monthly payments are
$200.69. Here is how to compute your extra payments: Multiply 21,000 by
8%, then divide the resulting figure by 12 (months). Subtract this
figure from 200.69 to determine the extra principal payment you will
make. $21,000 x 8% = 1,680/12 = $140. $200.69 - 140 = $60.69, the amount
that will apply against the principal with your first monthly payment.
Make your regular monthly payment and also send in the extra payment of
$60.69. To compute the next month's extra payment subtract $60.69
twice ($121.38) from your principal balance of $21,000 and use the same
formula again. $21,000 - $121.38 = $20,878.62 x 8% = 1,670.29/12 =
$139.19. $200.69 - $139.19 = $61.50, send this amount along with your
regular payment.

If you send in an extra payment equal to the amount going to the
principal every month you will definitely cut your contract life almost
in half and save thousands on interest payments. Another way to cut your
contract life substantially is to make one extra full payment per year.
This method also saves a great deal on interest over the life of the
contract. With both methods be sure to state in writing that the extra
amount is to apply against the principal. This works with mortgages, as
well. Before you start this accelerated payment schedule be sure to
verify there is no pre-payment penalty for an early payoff.

Q. The seller accepted my offer for 80 acres based on a specific
price per acre. This offer was subject to a survey, and it showed the
property to be almost 90 acres. What do I do now?

A. If your offer was properly written you are not bound to go through
with the sale, paying for extra acres at your price per acre agreement.
Nor is the seller bound to sell 90 acres to you for the price of 80. If
each of you still wants to go through with this it looks as if you have
some negotiating to do. Be sure to put your agreement concerning the
extra acres in writing.